4. Capitalized Software Development Costs

12 Months Ended

Oct. 31, 2019

Notes

4. Capitalized Software Development Costs

4.  Capitalized Software Development Costs

PASSUR Software Development costs consist of the following as of October 31, 2019 and 2018:

	2019	2018
Software development costs, beginning balance	$     21,159,000	$     19,918,000
Additions	2,573,000	2,503,000
Impairment charge	-	(1,262,000)
Total capitalized software development costs	23,732,000	21,159,000
Less accumulated amortization	15,413,000	13,017,000
Software development costs, ending balance, net	$       8,319,000	$       8,142,000

The Company’s capitalization of software development projects was $2,573,000 and $2,503,000 for the year ended October 31, 2019 and 2018, respectively. Amortization expense related to capitalized software development projects was $2,396,000 and $2,295,000 for the year ended October 31, 2019 and 2018, respectively.

As of October 31, 2019, amortization expense for capitalized software development costs where amortization has commenced is estimated to approximate $2,519,000, $2,082,000, $1,589,000, $923,000, and $234,000, for the fiscal years ending October 31, 2020, 2021, 2022, 2023 and 2024, respectively. As of October 31, 2019, the Company had $973,000 of capitalized software development costs relating to projects currently still in development, therefore, are not yet subject to amortization.

During fiscal year 2018, the Company reviewed the value of its capitalized software products and determined that some capitalized software products would no longer be marketed or made available for subscription sales as currently developed, which resulted in an impairment charge of the net carrying amount of approximately $960,000. These costs were recorded within “Cost of Revenues”. The Company did not record any impairments related to capitalized software development projects in fiscal year 2019.